Apple's iPhone 16 Sales Surge Amid AI Integration, But Long-Term Impact Remains Uncertain

iPhone 16 shows resilience as market cautiously observes Apple Intelligence's impact

Apple's latest financial report not only exceeded overall analyst expectations but also showcased robust sales performance for the iPhone 16, which has garnered significant attention from the public. According to CEO Tim Cook, the previous quarter's report included only the first week of iPhone 16 sales, yet it still outperformed last year's iPhone 15 series. The iPhone 15 also showed better sales compared to the prior year's iPhone 14. Moreover, the Greater China region reported a decline of less than 1% year-over-year, indicating that the launch performance of the iPhone 16 series showed no signs of crashing, contrary to earlier pessimistic market sentiments. Various mobile supply chain and chip industry players maintain a relatively positive outlook on the current smartphone market. For instance, MediaTek previously stated during its earnings call that demand in the smartphone market is significantly better than initial forecasts made at the beginning of 2024. Some chip manufacturers admitted that there was initially little confidence regarding smartphone sales in 2024, with many believing a downturn was likely. However, given the current situation, both Apple and Android flagship devices appear to be maintaining strong momentum heading into the second half of the year. Despite unfavorable macroeconomic factors and the incomplete development of AI applications, the stability of the current market has left stakeholders quite satisfied. AI features: not a significant draw for consumers Cook anticipates low-to-mid single-digit percentage growth for Apple's operational performance this season, with iPhone products expected to deliver steady sales. This statement has already provided some reassurance to the market, especially when compared to earlier concerns about order cuts for the iPhone 16 and potential sales crashes in the Greater China region. Yet, even though iPhone 16 sales are not crashing, skepticism remains regarding Cook's assertion that Apple Intelligence will drive hardware sales. On one hand, Apple's financial projections are not particularly optimistic, and on the other, none of the AI features currently offered by any brand have drawn in consumers. An insider familiar with the mobile industry pointed out that the rollout of Apple Intelligence is progressing slowly, especially in non-English-speaking markets where most consumers will have to wait until 2025 to access these features. This means that the majority of consumers will not be able to utilize Apple Intelligence on their iPhone 16s. Furthermore, consumer surveys indicate that while there is interest in AI applications, most consumers prefer to wait and see before purchasing new devices solely for AI capabilities. They hope to consider buying a new device once AI features become more refined. Some market opinions believe that historically, cases where software innovations have driven hardware sales are exceedingly rare. Even Apple, known for numerous software application breakthroughs, typically sees significant sales growth stemming from hardware specification upgrades. Relying on AI to boost smartphone sales may prove challenging in the short term. Particularly, multiple chip manufacturers have noted that the growth fueled by AI will not stem from any single killer application but rather from a comprehensive ecosystem that enhances human-computer interaction experiences. Achieving genuine consumer engagement will likely require further time for maturation, leaving the ultimate success or failure dependent on consumer market dynamics for both iPhone and Android platforms.

Apple sells $46 billion worth of iPhones over the summer as AI helps end slump

Apple snapped out of a recent iPhone sales slump during its summer quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off. Sales of the iPhone totaled $46.22 billion for the July-September period, a 6% increase from the same time last year, according to Apple's fiscal fourth-quarter report released Thursday. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales. The iPhone boost helped Apple deliver total quarterly revenue and profit that exceeded the analyst projections that sway investors, excluding a one-time charge of $10.2 billion to account for a recent European Union court decision that lumped the Cupertino, California, company with a huge bill for back taxes. Apple earned $14.74 billion, or 97 cents per share, a 36% decrease from the same time last year. If not for the one-time tax hit, Apple said it would have earned $1.64 per share -- topping the $1.60 per share predicted by analysts, according to FactSet Research. Revenue rose 6% from last year to $94.93 billion, about $400 million more than analysts forecast. But investors evidently were hoping for an even better quarter and appeared disappointed by an Apple forecast that implied its revenue for the October-December quarter covering the holiday shopping season might not grow as robustly as analysts envisioned. Apple's stock price shed about 2% in Thursday's extended trading, leaving the shares hovering around $221 -- well below their peak of about $237 reached in mid-October. The latest quarterly results captured the first few days that consumers were able to buy a new iPhone 16 line-up that included four different models designed to handle a variety of AI wizardry that the company is marketing as "Apple Intelligence." The branding is part of Apple's effort to distinguish its approach to AI from rivals such as Samsung and Google that got a head start on bringing the technology to smartphones. Even though the iPhone 16 was specifically built with AI in mind, the technology didn't become available until Apple released a free software update earlier this week that activated its first batch of technological tricks, including a feature designed to make its virtual assistant Siri smarter, more versatile and more colorful. And those improvements are only available in the U.S. for now. "This is just the beginning of what we believe generative AI can do," Apple CEO Tim Cook told analysts during a Thursday conference call. Cook said plans to expand the AI iPhone features into other countries in December, as well as roll out other software updates that will inject even more of the technology in the iPhone 16 and two high-end iPhone 15 models that are also equipped with the special computer chips needed for the slick new features. The December expansion will include an option to connect with OpenAI's ChatGPT to take advantage of technology that Apple isn't making on its own. More languages Investors are betting that as Apple's AI becomes more broadly available, it will prompt the hundreds of millions of consumers who are using older iPhones to upgrade to newer models in order to get their hands on the latest technology. "We believe it's a compelling upgrade reason," Cook asserted. But Investing.com analyst Thomas Monteiro believes iPhone sales would already be accelerating at a faster pace if consumers were blown away by Apple's AI technology, increasing the pressure on the company "to do an overall better job to impress the public."

How AI helped Apple sell $46 billion worth of iPhones

Apple snapped out of a recent iPhone sales slump during its summer quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off. Sales of the iPhone totaled $46.22 billion for the July-September period, a 6% increase from the same time last year, according to Apple's fiscal fourth-quarter report released Thursday. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales. The iPhone boost helped Apple deliver total quarterly revenue and profit that exceeded the analyst projections that sway investors, excluding a one-time charge of $10.2 billion to account for a recent European Union court decision that lumped the Cupertino, California, company with a huge bill for back taxes. Apple earned $14.74 billion, or 97 cents per share, a 36% decrease from the same time last year. If not for the one-time tax hit, Apple said it would have earned $1.64 per share -- topping the $1.60 per share predicted by analysts, according to FactSet Research. Revenue rose 6% from last year to $94.93 billion, about $400 million more than analysts forecast. But investors evidently were hoping for an even better quarter and appeared disappointed by an Apple forecast that implied its revenue for the October-December quarter covering the holiday shopping season might not grow as robustly as analysts envisioned. Apple's stock price shed about 2% in Thursday's extended trading, leaving the shares hovering around $221 -- well below their peak of about $237 reached in mid-October. The latest quarterly results captured the first few days that consumers were able to buy a new iPhone 16 line-up that included four different models designed to handle a variety of AI wizardry that the company is marketing as "Apple Intelligence." The branding is part of Apple's effort to distinguish its approach to AI from rivals such as Samsung and Google that got a head start on bringing the technology to smartphones. Even though the iPhone 16 was specifically built with AI in mind, the technology didn't become available until Apple released a free software update earlier this week that activated its first batch of technological tricks, including a feature designed to make its virtual assistant Siri smarter, more versatile and more colorful. And those improvements are only available in the U.S. for now. "This is just the beginning of what we believe generative AI can do," Apple CEO Tim Cook told analysts during a Thursday conference call. Cook said plans to expand the AI iPhone features into other countries in December, as well as roll out other software updates that will inject even more of the technology in the iPhone 16 and two high-end iPhone 15 models that are also equipped with the special computer chips needed for the slick new features. The December expansion will include an option to connect with OpenAI's ChatGPT to take advantage of technology that Apple isn't making on its own. More languages Investors are betting that as Apple's AI becomes more broadly available, it will prompt the hundreds of millions of consumers who are using older iPhones to upgrade to newer models in order to get their hands on the latest technology. "We believe it's a compelling upgrade reason," Cook asserted. But Investing.com analyst Thomas Monteiro believes iPhone sales would already be accelerating at a faster pace if consumers were blown away by Apple's AI technology, increasing the pressure on the company "to do an overall better job to impress the public."

Apple has big AI ambitions. They might take a while

MrBeast could replace his thumbnail creators with AI, media exec says Apple saw a record $94.9 billion in revenue for the quarter, with iPhone sales up 6% year-over-year, the Cupertino, California-based tech giant said Thursday. But it forecast low to mid-single digit total revenue growth in the upcoming December quarter, falling short of consensus estimates of about 7%. For analysts at Jefferies (JEF+0.95%), that's a sign that iPhone momentum won't continue into the next quarter. Instead, the strategists believe that the better-than-expected iPhone growth was due to an early launch of the iPhone 16 compared with the iPhone 15 last year, as well as iPhone 16 production starting a few weeks earlier than last year. "We believe in the [December quarter], AAPL would not longer benefit from an earlier iPhone 16 production and launch," Jefferies analysts said. They added that Apple Intelligence, the company's newly-released AI tools, "may not revive sales dramatically since AI capabilities are limited for the time being." Apple stock was down about 1.5% in Friday morning trading. Read more: Apple Intelligence is here. Early users are underwhelmed Apple CEO Tim Cook, however, sees the introduction of AI to Apple's suite of products as a transformative leap for the company, which has had a late start in the AI race. "Apple Intelligence marks the beginning of a new chapter for Apple innovation," Cook said on a call with analysts Thursday. He later added that Apple Intelligence marks the "beginning a new era for iPhone." Apple officially rolled out Apple Intelligence for users with the iPhone 15 Pro or iPhone 16 on Monday, after weeks of delays. The company first unveiled its latest slate of iPhones and Apple Intelligence at its annual event in early September. But the company has opted for a staggered rollout of its new AI features, with the next wave set to come out in December. This includes more powerful writing tools, visual additions to ChatGPT integration, and localized English in several countries, Cook said. Apple plans to add more languages and other tools next April. This gradual rollout will likely only start creating payoff in 2026 or 2027, Jefferies analysts said Friday. As a result, they warned that "current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high." While analysts don't see big benefits coming immediately, there is still optimism around future updates. D.A. Davidson managing director and senior software analyst Gil Luria said in a note Thursday that he still believes Apple Intelligence will be a "strong catalyst for iPhone 16 growth that increases as more features are released." "Preliminary Apple Intelligence features just began rolling out to iPhones in the past week, which we find incrementally positive, though we expect future feature releases to be more compelling that will help catalyze an upgrade cycle with the new iPhone 16 family," Luria said. On the whole, it's harder for analysts to tell exactly how the new specs will drive sales, given that the features will become incrementally available through software updates rather than through a launch, Bank of America (BAC+1.15%) researchers said in a Friday note. But they said the rollout could result in improvements in iPhone growth through 2025 and beyond. Wedbush analysts led by Dan Ives, who have long argued in favor of an AI-driven upgrade "supercycle" for the iPhone, said the September quarter results left them feeling more confident that Apple Intelligence "will spark a multiyear upgrade cycle that will result in a supercycle and ultimately drive iPhone growth towards the high single digits." According to Wedbush estimates, there are roughly 300 million iPhones globally that have not been upgraded for more than four years.

Apple sells USD46 billion worth of iPhones over the summer as AI helps end slump

AP - Apple snapped out of a recent iPhone sales slump during its summer quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence (AI) are paying off. Sales of the iPhone totalled USD46.22 billion for the July-September period, a six-per-cent increase from the same time last year, according to Apple's fiscal fourth-quarter report released on Thursday. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales. The iPhone boost helped Apple deliver total quarterly revenue and profit that exceeded the analyst projections that sway investors, excluding a one-time charge of USD10.2 billion to account for a recent European Union court decision that lumped the Cupertino, California, company with a huge bill for back taxes. Apple earned USD14.74 billion, or 97 cents per share, a 36-per-cent decrease from the same time last year. If not for the one-time tax hit, Apple said it would have earned USD1.64 per share - topping the USD1.60 per share predicted by analysts, according to FactSet Research. Revenue rose six per cent from last year to USD94.93 billion, about USD400 million more than analysts forecast. But investors evidently were hoping for an even better quarter and appeared disappointed by an Apple forecast that implied its revenue for the October-December quarter covering the holiday shopping season might not grow as robustly as analysts envisioned. Apple's stock price shed about two per cent in Thursday's extended trading, leaving the shares hovering around USD221 - well below their peak of about USD237 reached in mid-October. The latest quarterly results captured the first few days that consumers were able to buy a new iPhone 16 line-up that included four different models designed to handle a variety of AI wizardry that the company is marketing as "Apple Intelligence". The branding is part of Apple's effort to distinguish its approach to AI from rivals such as Samsung and Google that got a head start on bringing the technology to smartphones. Even though the iPhone 16 was specifically built with AI in mind, the technology didn't become available until Apple released a free software update earlier this week that activated its first batch of technological tricks, including a feature designed to make its virtual assistant Siri smarter, more versatile and more colourful. And those improvements are only available in the US for now. "This is just the beginning of what we believe generative AI can do," Apple Chief Executive Officer Tim Cook told analysts.

Apple's iPhone sales bounce back from recent slump amid AI expansion, but stock still dips

SAN FRANCISCO -- Apple snapped out of a recent iPhone sales slump during its summertime quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off. Sales of the iPhone totaled $46.22 billion for the July-September period, a 6% increase from the same time last year, according to Apple's fiscal fourth-quarter report released Thursday. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales. The iPhone boost helped Apple deliver total quarterly revenue and profit that exceeded the analyst projections that sway investors, excluding a one-time charge of $10.2 billion to account for a recent European Union court decision that lumped the Cupertino, California, company with a huge bill for back taxes. Apple earned $14.74 billion, or 97 cents per share, a 36% decrease from the same time last year. If not for the one-time tax hit, Apple said it would have earned $1.64 per share -- topping the $1.60 per share predicted by analysts, according to FactSet Research. Revenue rose 6% from last year to $94.93 billion, about $400 million more than analysts forecast. But investors evidently were hoping for an even better quarter. Apple's stock price slipped 1% in extended trading after the numbers came out. The results captured the first few days that consumers were able to buy a new iPhone 16 line-up that included four different models designed to handle a variety of AI wizardry that the company is marketing as "Apple Intelligence." The branding is part of Apple's effort to distinguish its approach to AI from rivals such as Samsung and Google that got a head start on bringing the technology to smartphones. Even though the iPhone 16 was specifically built with AI in mind, the technology didn't become available until Apple released a free software update earlier this week that activated its first batch of technological tricks, including a feature designed to make its virtual assistant Siri smarter, more versatile and more colorful. And those improvements are only available in the U.S. for now. Apple plans to expand the AI into other countries in the months ahead, as well as roll out other software updates that will inject even more of the technology in the iPhone 16 and two high-end iPhone 15 models that are also equipped with the special computer chips needed for the slick new features. Investors are betting that as Apple's AI becomes more broadly available, it will prompt a flurry of upgrades among the hundreds of millions of consumers who are using older iPhones that will seem woefully outdated because they can't handle the latest technology.

Apple reports robust demand for iPhone 16 even as overall sales in China slow

Company reports $94.9bn in revenue, slightly beating Wall Street projections in first look at demand for its new phone Apple reported strong demand for the iPhone 16 in its quarterly earnings report on Thursday, though sales in China slightly decreased year-over-year. The company reported $94.9bn in revenue, up 6% year-over-year, and $1.64 in earnings per share (EPS). The company's earnings slightly beat Wall Street projections of $94.4bn in sales and an EPS of $1.60. The company saw $46.2bn in revenue from iPhone sales, up from $43.8bn year-over-year. Fourth-quarter revenue from its services division, which include subscriptions, increased from $22.31bn to $24.97bn year-over-year. The earnings report is the first look at demand for the iPhone 16, which Apple released days before the end of the fourth quarter. The launch of the latest iPhone was expected to be a boon for Apple in China and could enable it to claw back market share, according to an analysis by market intelligence firm International Data Corporation. Due to tight competition from players such as Huawei and Xiaomi, the company had fallen to sixth place among smartphone sellers last quarter. In a statement, CEO Tim Cook touted the release of the company's "best products yet", which included Apple Intelligence in addition to the iPhone 16. "And this week, we released our first set of features for Apple Intelligence, which sets a new standard for privacy in AI and supercharges our lineup heading into the holiday season," Cook said in a statement. Apple has struggled with flagging demand for its other devices over the past year. Sales of its wearable devices such as the Apple Watch and Airpods have declined for four straight quarters. Sales of the Vision Pro headset, Apple's first new hardware product in the better part of a decade, have also failed to take off. In addition to the latest on iPhone 16 demand, investors will be looking for the company's updates on the slow roll out of its suite of AI features, called Apple Intelligence, which is included in the latest version of Apple's iPhone operating system. Cook has defended the company's decision to take its time releasing a competitor to Google's Gemini, OpenAI's ChatGPT and Meta AI. In an interview with the Wall Street Journal, he said the company wanted to focus on creating the best AI assistant, not the first. "We weren't the first to do intelligence," he said. "But we've done it in a way that we think is the best for the customer." The bare-bones version of Apple Intelligence, which some users got a hold of in a limited release, has had some trouble on the intelligence front. The AI feature has woefully misinterpreted news alerts and shared inaccurate summaries, according to several examples users have shared on social media. The company has not rolled out the feature in important markets such as Europe and China, where it still faces steep competition. Apple has also faced some pressure in other parts of Asia. Indonesia banned iPhone 16 sales after the government said the company failed to come through on its promise to invest more in the local economy.

iPhone 16 sales look to be off to a strong start, as Apple announces record revenues

The iPhone 16 may be off to a better start than some analysts had forecast -- at least if you go by the sales figures Apple just posted for its final fiscal quarter of the year. For the three months ended September 28, Apple posted a year-over-year gain in iPhone sales, and it's pretty clear some of that was powered by the iPhone 16's September release. Granted, the iPhone 16 models went on sale September 20, giving Apple just a week of sales for its new phones to include in the September quarter. Yet, the $46.2 billion in iPhone revenue posted these past three months marked a September quarter record for iPhone sales, which rose 6% over last year's tally. More important, from Apple's perspective, the quarter marked a return to growth for iPhone sales. In the June and March quarters for this fiscal year, iPhone revenue dropped 1% and 10%, respectively. There were reasons for those drops -- the June quarter saw Apple hit by unfavorable currency exchange rates and March's sales growth was skewed by supply chain issues the previous year. But Apple's return to iPhone sales growth surely owes some credit to the iPhone 16 launch. "The iPhone active installed base grew to a new all-time high in total and in every geographic segment," said Luca Maestri, Apple's outgoing chief financial officer, appearing on his final conference call with Wall Street analysts. "During the September quarter, many iPhone models were among the top selling smartphones around the world. In fact, according to a survey from [marketing data firm] Kantar, iPhone was the top selling model in the U.S., urban China, the UK, Australia and Japan." Apple doesn't break down its sales into specific products, so it's difficult to say how much of an impact one week of iPhone 16 sales had on the company's quarterly performance. Still, it's hard to imagine customers making a late run on iPhone 15 models to entirely fuel Apple's record iPhone revenue. Speaking to CNBC, Apple CEO Tim Cook said that iPhone 15 sales were stronger than the iPhone 14 sales in the year-ago quarter while also noting that iPhone 16 sales were stronger than the iPhone 15 in the comparable period. Heading into the earnings call today (October 31), some analyst had been forecasting lighter demand for the iPhone 16, citing Apple reducing orders from its suppliers for the new phones. We'll get a more complete picture in January when the company reports holiday sales figures, which will include the first full quarter of iPhone 16 numbers. Apple seems relatively optimistic about its prospects for the holiday, even with a forecast of low to mid-single digit growth in revenue for the December quarter. "We have the best lineup we've ever had going into the holiday season, including Apple Intelligence, which marks the start of a new chapter for our products," Cook told analysts during Apple's earnings presentation. "This is just the beginning of what we believe generative AI can do, and I couldn't be more excited for what's to come." Apple provided a little bit more detail on the timeline of the Apple Intelligence rollout after this week's release of iOS 18.1 brought the first batch of Apple's AI tools to compatible iPhones. (Macs and iPads also received Apple Intelligence this week.) iOS 18.2, which came out as a developer beta last week, will arrive in December, Cook said. That update will bring Visual Intelligence features to the iPhone 16, as well as generative image creation tools in the form of the Image Playground and Gemoji. The December update also localized English support for Apple Intelligence features in the U.K., Australia, Canada, Ireland and New Zealand. Support for other languages will come to Apple Intelligence by April 2025. Overall, Apple posted a September record for revenue with total sales rising 6% overall to $94.9 billion. That was fueled by record revenues for service, which grew 12% to $22.1 billion.

Apple's iPhone sales bounce back from recent slump amid AI expansion, but stock still dips

SAN FRANCISCO (AP) -- Apple snapped out of a recent iPhone sales slump during its summertime quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off. Sales of the iPhone totaled $46.22 billion for the July-September period, a 6% increase from the same time last year, according to Apple's fiscal fourth-quarter report released Thursday. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales. The iPhone boost helped Apple deliver total quarterly revenue and profit that exceeded the analyst projections that sway investors, excluding a one-time charge of $10.2 billion to account for a recent European Union court decision that lumped the Cupertino, California, company with a huge bill for back taxes. Apple earned $14.74 billion, or 97 cents per share, a 36% decrease from the same time last year. If not for the one-time tax hit, Apple said it would have earned $1.64 per share -- topping the $1.60 per share predicted by analysts, according to FactSet Research. Revenue rose 6% from last year to $94.93 billion, about $400 million more than analysts forecast. But investors evidently were hoping for an even better quarter. Apple's stock price slipped 1% in extended trading after the numbers came out. The results captured the first few days that consumers were able to buy a new iPhone 16 line-up that included four different models designed to handle a variety of AI wizardry that the company is marketing as "Apple Intelligence." The branding is part of Apple's effort to distinguish its approach to AI from rivals such as Samsung and Google that got a head start on bringing the technology to smartphones. Even though the iPhone 16 was specifically built with AI in mind, the technology didn't become available until Apple released a free software update earlier this week that activated its first batch of technological tricks, including a feature designed to make its virtual assistant Siri smarter, more versatile and more colorful. And those improvements are only available in the U.S. for now. Apple plans to expand the AI into other countries in the months ahead, as well as roll out other software updates that will inject even more of the technology in the iPhone 16 and two high-end iPhone 15 models that are also equipped with the special computer chips needed for the slick new features. Investors are betting that as Apple's AI becomes more broadly available, it will prompt a flurry of upgrades among the hundreds of millions of consumers who are using older iPhones that will seem woefully outdated because they can't handle the latest technology.

Apple's IPhone Sales Bounce Back From Recent Slump Amid AI Expansion, but Stock Still Dips

SAN FRANCISCO (AP) -- Apple snapped out of a recent iPhone sales slump during its summertime quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off. Sales of the iPhone totaled $46.22 billion for the July-September period, a 6% increase from the same time last year, according to Apple's fiscal fourth-quarter report released Thursday. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales. The iPhone boost helped Apple deliver total quarterly revenue and profit that exceeded the analyst projections that sway investors, excluding a one-time charge of $10.2 billion to account for a recent European Union court decision that lumped the Cupertino, California, company with a huge bill for back taxes. Apple earned $14.74 billion, or 97 cents per share, a 36% decrease from the same time last year. If not for the one-time tax hit, Apple said it would have earned $1.64 per share -- topping the $1.60 per share predicted by analysts, according to FactSet Research. Revenue rose 6% from last year to $94.93 billion, about $400 million more than analysts forecast. But investors evidently were hoping for an even better quarter. Apple's stock price slipped 1% in extended trading after the numbers came out. The results captured the first few days that consumers were able to buy a new iPhone 16 line-up that included four different models designed to handle a variety of AI wizardry that the company is marketing as "Apple Intelligence." The branding is part of Apple's effort to distinguish its approach to AI from rivals such as Samsung and Google that got a head start on bringing the technology to smartphones. Even though the iPhone 16 was specifically built with AI in mind, the technology didn't become available until Apple released a free software update earlier this week that activated its first batch of technological tricks, including a feature designed to make its virtual assistant Siri smarter, more versatile and more colorful. And those improvements are only available in the U.S. for now. Apple plans to expand the AI into other countries in the months ahead, as well as roll out other software updates that will inject even more of the technology in the iPhone 16 and two high-end iPhone 15 models that are also equipped with the special computer chips needed for the slick new features. Investors are betting that as Apple's AI becomes more broadly available, it will prompt a flurry of upgrades among the hundreds of millions of consumers who are using older iPhones that will seem woefully outdated because they can't handle the latest technology. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Apple beats Wall Street's targets as iPhone 16 sales get off to a solid start - SiliconANGLE

Apple beats Wall Street's targets as iPhone 16 sales get off to a solid start Apple Inc. topped Wall Street's expectations on earnings and revenue as it delivered its fourth quarter earnings results today, but its stock wavered in extended trading after it reported yet another decline in sales in Greater China. The iPhone maker reported earnings before certain costs such as stock compensation of $1.64 per share, just edging past the analyst consensus estimate of $1.60. Revenue for the period rose 6% from a year ago to $94.93 billion, also just beating the Street's target of $94.58 billion. For the quarter, Apple delivered a net profit of $14.73 billion, down from $22.96 billion one year ago. The decrease was attributed to a one-time charge relating to a decision by the European Commission, which ordered Apple to pay $10.2 billion in back-taxes to the Irish government. Apple also published its full year results for fiscal 2024, saying its total revenue came to $391.04 billion, up 2% from a year ago, while its free cash pile now stands at $156.65 billion. Following the report, Apple's stock was down 2%. "Today Apple is reporting a new September quarter revenue record of $94.9 billion, up 6 percent from a year ago," Apple Chief Executive Tim Cook (pictured) said in a statement. As always, the performance of the company's iconic iPhones were the main subject of attention, and Apple said sales of the devices grew 6% in the quarter, compared to the same period one year earlier. The company notably launched new iPhone models on Sept. 20, and the fourth quarter concluded one week later, meaning the report only provides limited data on the sales of its most advanced handsets to date. In an interview with CNBC, Cook said sales of the iPhone 15 were stronger than the iPhone 14 in the preceding year's quarter, while the iPhone 16 performed better than the iPhone 15. The CEO added that the company is eagerly anticipating customer's responses to Apple Intelligence, the new suite of artificial intelligence tools that are integrated with its flagship handsets. The features are being rolled out this week with the iOS 18.1 system update. Apple's strategy for AI has been focused on integrating the technology with the iOS operating system, as opposed to restricting it to certain devices or bundling it in a standalone application. One of its aims is to make life easier for users when performing daily tasks, such as editing emails. Some elements of Apple Intelligence will be exclusive to the iPhone 16 though, as it features a more advanced chipset. However, a lot of the features will work with the iPhone 15 Pro. It's notable that not all of the Apple Intelligence features are available, as the company is going for a phased rollout. That strategy has left some analysts wondering if the delay in certain features might delay iPhone upgrades, but Cook said the early sales data suggests that's not the case. "We're getting great feedback from customers and developers already and a really early stat, which is only three days worth of data: Users are adopting iOS 18.1 at twice the rate that they adopted 17.1 in the year-ago quarter," Cook told CNBC. Looking at Apple's other products, the iPad business unit showed the strongest growth of all, with revenue increasing by 8% to $6.95 billion. That increased appears to stem from pent up demand, with Apple launching new iPad Pro models in May, having failed to update the product at all in 2023. In the Mac business, sales ticked up 2% to $7.74 billion in the quarter, which included what Apple terms "back-to-school" laptop sales. According to Cook, the sales growth was driven by the recently updated MacBook Air, which launched in May with a newer, more powerful chipset. Apple's services business continued to grow its importance, with sales up 12% from a year earlier to $25 billion. The unit encompasses subscriptions for services like iCloud, AppleCare warranties, Google Search revenue and commissions on app purchases. Despite the revenue increase, the unit fell just short of the analyst's target of $25.1 billion. The Other Products business, which covers the Apple Watch, AirPods headphones and HomePod speakers, saw sales decline 3% to $9.04 billion in the quarter, despite the launch of new Watch and AirPods products that debuted alongside the iPhone 16. One sore spot for investors was the company's performance in Greater China, which spans mainland China, Hong Kong and Taiwan, and is Apple's third-largest sales region. There, the company is facing renewed competition from domestic companies like Huawei Technologies Co. Ltd., and its revenue dropped to $15.03 billion, from $15.08 billion one year earlier. Apple declined to provide formal guidance for the current quarter, as it has done since the early days of the COVID-19 pandemic in 2020, but on the call its finance chief Luca Maestri said the company expects to see "low-to-mid-single digit sales" over the three-month period. He added that the company expects services revenue growth to be at the same rate as it has been for the past year, at around 12%. The report revealed that Apple's capital spending rose by $2.91 billion to $9.45 billion in the quarter. That's markedly lower than many of its megacap technology rivals, such as Microsoft Corp., Meta Platforms Inc. and Amazon.com Inc., which have been investing billions of dollars into their AI infrastructure. Apple doesn't need nearly as much infrastructure to run its Apple Intelligence services, as it is relying on third-party cloud services providers to handle many of those workloads, though it will use some internal data centers for certain, more sensitive AI processes. The company added that it spent $29 billion on share repurchases and dividends during the quarter.

Apple earnings top forecasts, but markets looking for iPhone 16 update

Apple posted stronger-than-expected fourth quarter earnings Thursday, as well as a September record for iPhone sales, as it lays the groundwork for its newly-minted ambitions in artificial intelligence technologies Apple (AAPL) , the world's most-valuable company, is looking to deliver its version of AI, dubbed Apple Intelligence, to its 2.2 billion global user base largely through its recently-launched iPhone 16. Early indications from a host of market research groups, Wall Street analysts, and Apple-focused websites, however, suggest demand for the new smartphone is tracking close to or just below iPhone 15 levels as consumers seem content to wait for more details on the Apple Intelligence rollout and software updates tied to the group's broader AI strategy. Apple said earnings for the three months ending in September, the group's fiscal fourth quarter, were pegged at $1.64 per share, a tally that was up 12.3% from the same period last year and 18 cents ahead of the Street consensus forecast. Removing a one-time charge to reflect a recent European ruling on taxes, however, trims the fourth quarter total to 97 cents per share. Group revenues, Apple said, 6% from last year to $94.93 billion, a tally that narrowly topped analysts' estimates of $94.56 billion. Apple said iPhone revenues rose 5.5% from last year to a September quarter record of $46.22 billion, topping Street forecasts, while China sales were largely flat to last year at $15.03 billion as world's second largest economy's post-Covid recovery continues to sputter. "During the quarter, we were excited to announce our best products yet, with the all-new iPhone 16 lineup, Apple Watch Series 10, AirPods 4, and remarkable features for hearing health and sleep apnea detection," said CEO Tim Cook. "And this week, we released our first set of features for Apple Intelligence, which sets a new standard for privacy in AI and supercharges our lineup heading into the holiday season." Related: Analysts revisit Apple stock forecast ahead of earnings Apple shares were marked 1.3% lower in after-hours trading to indicate a Friday opening bell price of $222.79 each, a move that would trim the stock's year-to-date gain to around 15.7%. More Tech Stocks: Revenues from Apple's key services business - which includes Apple Pay, iCloud and Apple TV - rose 12% to $24.97 billion, just shy of the Street's $25.3 billion forecast. Hardware sales, were mixed: Mac sales rose 1.7% from last year to $7.74 billion, Apple said, and iPad sales were up 8% to $6.95 billion. Wearables sales, which includes the AppleWatch, fell 3% to $9.04 billion. Related: Veteran fund manager sees world of pain coming for stocks

Tim Cook Says Apple Intelligence Is Twice as Popular as Previous iOS Updates

The company's results for the quarter were boosted by a surge in iPhone sales. Apple (AAPL)'s new A.I.-infused software update, iOS 18.1, has only been available for three days. But, according to CEO Tim Cook, it's already being adopted twice as fast as Apple's previous iOS 17.1 update, he told analysts yesterday (Oct. 31) on an earnings call. "That clearly shows a level of interest out there," Cook said. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters In June, Apple unveiled its plans to gradually roll out its take on A.I. through Apple Intelligence, a set of A.I. tools available to users of newer iPhone, iPad and Mac computers. While some of these features, which aid in proofreading messages, summarizing emails and providing a more conversational version of Siri, are now available via 18.1, Cook told analysts that more capabilities are coming soon. In December, another software update will integrate OpenAI's ChatGPT and provide "even more powerful writing tools and visual intelligence experiences," said the executive. Apple Intelligence is currently only available in U.S. English but will expand to include localized English for the U.K., Australia, Canada, Ireland and New Zealand later this year, with plans to add more languages next April. "We're moving just as fast as possible while ensuring quality," said Cook. Even without a widespread rollout of Apple Intelligence, Apple's iPhones appear to be selling just fine. The company, which added the new iPhone 16 and iPhone 16 Plus models to its lineup in September, saw its iPhone revenue for the July-September quarter increase by more than 5 percent year-over-year to $46.2 billion. iPhone sales made up nearly half of Apple's total quarterly revenue of $94.9 billion, up 6 percent from last year. iPad sales rose by nearly 8 percent to $6.9 billion during the quarter, and Mac sales increased by 1 percent to $7.7 billion. Sales from the accessories and wearable devices sector dipped by 3 percent to $9 billion, while Apple's services division, which includes App Store, Apple Pay, Apple TV, iCloud and Apple Music, reported record revenue of $24.9 billion for the quarter, up 12 percent from last year. Apple's revenue geographically was up everywhere besides China, where the company faces lagging consumer demand and an increasingly competitive environment. Sales in the region was flat during the past quarter, falling slightly to $15.03 billion from last year's $15.08 billion last year. The decrease was less substantial compared to dips in previous recent quarters. The company additional noted a slump in net income, which fell 35 percent year-over-year to $14.73 billion due to a one-time charge. Apple earlier this year paid $14.4 billion to the European Union as a result of a 2016 case involving its tax payments to Ireland. Excluding the fee, Apple said its net income increased 12 percent compared to the same quarter last year.

Apple Users Hungry For AI: Tim Cook Says 'iOS 18.1 Has Twice The Adoption Rate Of 17.1' -- What It Means For iPhone 16 - Apple (NASDAQ:AAPL)

During Apple Inc.'s AAPL fourth-quarter earnings call, Tim Cook said that the adoption rate of iOS 18.1 has outpaced its predecessor, iOS 17.1, by two-fold. What Happened: On Thursday, Apple's CEO addressed questions about the demand and supply balance for the iPhone 16, which was launched in September earlier this year. During the conversation, Cook refuted the idea that Apple has consistently ended the December quarter with iPhone demand surpassing supply for the past four years. See Also: Apple Refreshes Mac Mini: Smaller Form Factor, M4 Chip Power, Carbon Neutral Cook acknowledged pandemic disruptions but assured that the supply constraints for the iPhone 16 Pro and iPhone 16 Pro Max models would be resolved soon. Cook attributed the high adoption rate of iOS 18.1 to strong interest in the iPhone 16, which was launched just three days before the earnings call. He suggested that the new Apple Intelligence feature is a significant incentive for users to upgrade. "If you just look at the first three days, which is all we have obviously from Monday, the 18.1 adoption is twice as fast as the 17.1 adoption was in the year-ago quarter. And so, there's definitely interest out there for Apple Intelligence," he stated. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Apple announced a fiscal fourth-quarter revenue of $94.9 billion, surpassing analyst projections of $94.56 billion. The company reported adjusted earnings of $1.64 per share for the quarter, exceeding expectations of $1.60 per share. This marked the seventh consecutive quarter that Apple has outperformed analyst estimates in both revenue and earnings, according to Benzinga Pro. Earlier in October it was reported that the iPhone 16 saw a 20% sales surge in China, a crucial market for Apple, despite early price cuts due to the absence of AI. Apple also set a new sales record for its iPhone during the third quarter of 2024, capturing an 18% market share, just behind Samsung. However, Apple faced a setback when the Indonesian government banned the sale of the iPhone 16 due to the company's failure to meet its investment commitments in the country. Price Action: At the time of writing, Apple shares fell 1.86% to $221.71 in after-hours trading, following a 1.82% decline to $225.91 during the regular trading session, according to Benzinga Pro data. Image via Shutterstock Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Alphabet Q3 Earnings Highlights: Revenue Beat, EPS Beat, Google Cloud Up 35%, 'Momentum Across The Company Is Extraordinary' Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Apple offers modest growth outlook after iPhone sales help beat profit expectations

Apple's AI-enhanced iPhone sales exceeded Wall Street expectations, but the company's modest future revenue forecast raised concerns. China sales declined in the fourth quarter, causing some analysts to worry. Apple's overall revenue and profit were strong, but some product lines missed expectations. The company's services business is expected to grow, but hardware revenue might decline.Apple's AI-enhanced iPhone made a strong start, pushing quarterly sales ahead of Wall Street expectations, but a modest revenue forecast raised questions about whether that momentum will hold over the holiday sales season. A decline in China sales during the fourth quarter also concerned some analysts and investors, helping send shares down 1.4% in after-hours trade, despite surprisingly large overall profit and revenue in that period. Chief Financial Officer Luca Maestri told analysts during a conference call that Apple expects overall revenue to "grow low to mid single digits" during its fiscal first quarter, which ends in December. Analysts had expected revenue growth of 6.65% to $127.53 billion during the quarter, according to LSEG data. Apple did say it expects double-digit growth in its services business in its first quarter, leading some analysts to ask executives during a call if overall hardware revenue might decline. Executives did not address that question, or give any indication of how the iPhone might fare, including in China, where Apple's new AI features are not available. Apple has not said when they will be available. Prior to management's call with analysts, Tom Forte, an analyst at Maxim Group, attributed Apple's share drop to fourth-quarter China sales coming in below expectations. "We see the potential for sustained weakness in China," he said. Apple said overall fourth-quarter sales were $94.93 billion, ahead of Wall Street targets of $94.58 billion, according to LSEG. Earnings of $1.64 per share, excluding a massive one-time tax charge in the European Union, topped analyst expectations of $1.60 per share. Fourth-quarter sales of Apple's iPhone, the company's main product, were up 5.5% to $46.22 billion, compared with analyst estimates of $45.47 billion. Other product lines missed expectations. Apple's fourth quarter ended Sept. 28, meaning it reflects only a few days of sales of its iPhone 16 series that went on sale Sept. 20. Apple Chief Executive Tim Cook told Reuters that iPhone 16 sales grew faster than iPhone 15 sales did a year earlier, with both phones on sale for the same number of days in the fourth quarter. Cook also said Apple customers are downloading a new version of its iPhone operating system with what it calls Apple Intelligence features at twice the rate they had the year before. "We've had great feedback from customers and developers already," Cook said. "We're off to a good start." The rollout of Apple's artificial-intelligence strategy, which it revealed this year, hinges on how well its new phones sell. Rather than introduce AI in a standalone app or service, Apple has sprinkled Apple Intelligence throughout its most recent operating systems as new features, such as the ability to help re-write an email in a more professional tone. Those features will mostly be available on iPhone 16 models, which feature more powerful computing chips, although the pro versions of the iPhone 15 both work with Apple Intelligence. While some of those Apple Intelligence features arrived this week, others have been delayed, which has led some Wall Street analysts to wonder whether consumers will be slower to upgrade their devices this year while flagship software features trickle out. Apple's rivals Microsoft and Meta both said this week they expect continued increases in spending to support their AI strategies. Apple said payments for property and equipment - a measure of its capital expenditures - were up $2.91 billion from the previous quarter to $9.45 billion. Apple's lower spending comes in part because it uses third-party data centers for some AI work. Some aspects of Apple Intelligence do rely on Apple's own data centers, but the company is using its own in-house chips to power those features. "There would be some (financial) benefit to us by using our own silicon, obviously, but that's not the reason we're doing it. We're doing it because we can provide the same standard of privacy and security that we can provide on device," Cook said. Sales in Apple's services business, which includes iCloud storage and Apple Music, were $24.97 billion, compared with analyst expectations of $25.28 billion, according to LSEG. Mac and iPad sales were $7.74 billion and $6.95 billion, respectively, compared to estimates of $7.82 billion and $7.09 billion, according to LSEG data. Sales in Apple's home and wearables business, which includes its Apple Watch and AirPods devices, fell to $9.04 billion, compared with estimates of $9.2 billion, according to LSEG. Earnings per share were 97 cents including the charge related to a one-time multi-billion-euro European tax payment.

Apple's AI-enhanced iPhones help tech giant's earnings beat

Apple Inc's artificial intelligence-enhanced iPhones have pushed its latest earnings past Wall Street's expectations, but a muted outlook for this quarter dampened its share price after the bell. Apple's fourth-quarter 2024 results on Oct. 31 reported revenues hit $94.93 billion, up 6.1% from last year and just beating analyst estimates of $94.56 billion. Its earnings per share came in at $1.64, up from $1.46 in the year-ago quarter and 10% greater than Wall Street's estimate of $1.49. Its flagship iPhone saw sales bump 5.5% from a year ago to $46.22 billion, beating estimates of $45.47 billion. Its quarter ending Sept. 28 took in just eight days of sales for its latest iPhone 16 which launched Sept. 20. The tech giant has recently injected its later-gen iPhones -- and its other products like the iPad and Macs -- with AI features in a bid to keep up with consumer expectations and its AI-shipping competitors. However, the so-called "Apple Intelligence" has, so far, not lived up to the hype and only really offered the prominent feature of summarizing notifications. It's currently in beta, restricted to the US English language, and is locked behind a waitlist, but Apple promises more features and languages are to come in December. Apple's AI is also only available on its newest range of phones -- the iPhone 16 -- and the Pro versions of its iPhone 15 range, which means customers who want AI on their phones would have to upgrade. But Apple financial chief Luca Maestri said on an earnings call that it expects total revenues this quarter, ending December, "to grow low to mid-single digits year over year" -- below Wall Street estimates of over 6.5% to $127.5 billion. Related: Binance partners with Amazon Web Services to enhance user experience Executives, including CEO Tim Cook, ducked questions on the call about how they think iPhone sales could fare this quarter, especially in China, one of Apple's biggest markets where the AI features aren't available, and Apple hasn't said when they will be. Apple (AAPL) closed down 1.82% to $225.91 on Oct. 31, continuing to fall 1.86% after hours to $221.71, per Google Finance. Its share price is, however, up around 21.7% this year. The tech giant reported its China region sales were $15.03 billion compared to the $16.34 billion estimated by analysts, which may have contributed to its after-market hours price slide.

Apple Offers Modest Growth Outlook After Boost From Strong iPhone Sales

Apple says it expects overall revenue to "grow low to mid single digits" Apple's AI-enhanced iPhone made a strong start, pushing quarterly sales ahead of Wall Street expectations, but a modest revenue forecast raised questions about whether that momentum will hold over the holiday sales season. A decline in China sales during the fourth quarter also concerned some analysts and investors, helping send shares down 1.4% in after-hours trade, despite surprisingly large overall profit and revenue in that period. Chief Financial Officer Luca Maestri told analysts during a conference call that Apple expects overall revenue to "grow low to mid single digits" during its fiscal first quarter, which ends in December. Analysts had expected revenue growth of 6.65% to $127.53 billion during the quarter, according to LSEG data. Apple did say it expects double-digit growth in its services business in its first quarter, leading some analysts to ask executives during a call if overall hardware revenue might decline. Executives did not address that question, or give any indication of how the iPhone might fare, including in China, where Apple's new AI features are not available. Apple has not said when they will be available. Prior to management's call with analysts, Tom Forte, an analyst at Maxim Group, attributed Apple's share drop to fourth-quarter China sales coming in below expectations. "We see the potential for sustained weakness in China," he said. Apple said overall fourth-quarter sales were $94.93 billion, ahead of Wall Street targets of $94.58 billion, according to LSEG. Earnings of $1.64 per share, excluding a massive one-time tax charge in the European Union, topped analyst expectations of $1.60 per share. Fourth-quarter sales of Apple's iPhone, the company's main product, were up 5.5% to $46.22 billion, compared with analyst estimates of $45.47 billion. Other product lines missed expectations. Apple's fourth quarter ended Sept. 28, meaning it reflects only a few days of sales of its iPhone 16 series that went on sale Sept. 20. Apple Chief Executive Tim Cook told Reuters that iPhone 16 sales grew faster than iPhone 15 sales did a year earlier, with both phones on sale for the same number of days in the fourth quarter. Cook also said Apple customers are downloading a new version of its iPhone operating system with what it calls Apple Intelligence features at twice the rate they had the year before. "We've had great feedback from customers and developers already," Cook said. "We're off to a good start." AI Strategy The rollout of Apple's artificial-intelligence strategy, which it revealed this year, hinges on how well its new phones sell. Rather than introduce AI in a standalone app or service, Apple has sprinkled Apple Intelligence throughout its most recent operating systems as new features, such as the ability to help re-write an email in a more professional tone. Those features will mostly be available on iPhone 16 models, which feature more powerful computing chips, although the pro versions of the iPhone 15 both work with Apple Intelligence. While some of those Apple Intelligence features arrived this week, others have been delayed, which has led some Wall Street analysts to wonder whether consumers will be slower to upgrade their devices this year while flagship software features trickle out. Apple's rivals Microsoft and Meta both said this week they expect continued increases in spending to support their AI strategies. Apple said payments for property and equipment - a measure of its capital expenditures - were up $2.91 billion from the previous quarter to $9.45 billion. Apple's lower spending comes in part because it uses third-party data centers for some AI work. Some aspects of Apple Intelligence do rely on Apple's own data centers, but the company is using its own in-house chips to power those features. "There would be some (financial) benefit to us by using our own silicon, obviously, but that's not the reason we're doing it. We're doing it because we can provide the same standard of privacy and security that we can provide on device," Cook said. Sales in Apple's services business, which includes iCloud storage and Apple Music, were $24.97 billion, compared with analyst expectations of $25.28 billion, according to LSEG. Mac and iPad sales were $7.74 billion and $6.95 billion, respectively, compared to estimates of $7.82 billion and $7.09 billion, according to LSEG data. Sales in Apple's home and wearables business, which includes its Apple Watch and AirPods devices, fell to $9.04 billion, compared with estimates of $9.2 billion, according to LSEG. Earnings per share were 97 cents including the charge related to a one-time multi-billion-euro European tax payment. © Thomson Reuters 2024

Apple beats Wall Street estimates, supported by iPhone sales

(Reuters) - Apple beat Wall Street sales and profit expectations on Thursday for its fiscal fourth quarter, bolstered by strong early sales of iPhone 16, a set of phones designed for new AI features that was released near the end of the quarter. Apple said sales were $94.93 billion, ahead of Wall Street targets of $94.58 billion, according to LSEG. Earnings of $1.64 per share, excluding a massive one-time tax charge in the European Union, topped analyst expectations of $1.60 per share. Sales of its iPhone, the company's main product, were up 5.5% to $46.22 billion, compared with analyst estimates of $45.47 billion. Other product lines missed expectations. Apple's fourth quarter ended Sept. 28, meaning it reflects only a few days of sales of its iPhone 16 series that went on sale Sept. 20. Apple Chief Executive Tim Cook told Reuters that iPhone 16 sales grew faster than iPhone 15 sales did a year earlier, with both phones on sale for the same number of days in the fourth quarter. He also said Apple customers are downloading a new version of its iPhone operating system with what it calls Apple Intelligence features at twice the rate they had the year before. "We've had great feedback from customers and developers already," Cook said. "We're off to a good start." Investors will be listening closely to a 5 p.m. ET (2100 GMT) conference call where Apple executives will outline expectations for the fiscal first quarter, which encompasses holiday sales in the U.S., Europe and several other markets. The rollout of Apple's artificial-intelligence strategy, which it revealed this year, hinges on how well its new phones sell. Rather than introduce AI in a standalone app or service, Apple has sprinkled Apple Intelligence throughout its most recent operating systems as new features, such as the ability to help re-write an email in a more professional tone. Those features will mostly be available on iPhone 16 models, which feature more powerful computing chips, although the pro versions of the iPhone 15 both work with Apple Intelligence. While some of those Apple Intelligence features arrived this week, others have been delayed, which has led some Wall Street analysts to wonder whether consumers will be slower to upgrade their devices this year while flagship software features trickle out. The early iPhone 16 results on Thursday could allay some of those concerns. IPhone sales helped steady Apple's fourth-quarter sales in China, which were down less than 1% to $15.03 billion overall. Analysts were expecting China sales of $15.78 billion on average, according to data from Visible Alpha. SPENDING RISES Apple's rivals Microsoft and Meta both said this week they expect continued increases in spending to support their AI strategies. Apple said payments for property and equipment - a measure of its capital expenditures - were up $2.91 billion from the previous quarter to $9.45 billion. Apple's lower spending comes in part because it uses third-party data centers for some AI work. Some aspects of Apple Intelligence do rely on Apple's own data centers, but the company is using its own in-house chips to power those features. "There would be some (financial) benefit to us by using our own silicon, obviously, but that's not the reason we're doing it. We're doing it because we can provide the same standard of privacy and security that we can provide on device," Cook said. Sales in Apple's services business, which includes iCloud storage and Apple Music, were $24.97 billion, compared with analyst expectations of $25.28 billion, according to LSEG. Mac and iPad sales were $7.74 billion and $6.95 billion, respectively, compared to estimates of $7.82 billion and $7.09 billion, according to LSEG data. Sales in Apple's home and wearables business, which includes its Apple Watch and AirPods devices, fell to $9.04 billion, compared with estimates of $9.2 billion, according to LSEG. Earnings per share were 97 cents including the charge related to a one-time multi-billion-euro European tax payment. (Reporting by Stephen Nellis and Akash Sriram; Editing by Rod Nickel and Peter Henderson)

Apple results top Wall Street targets, iPhone sales offset misses by other products

Oct 31 (Reuters) - Apple (AAPL.O), opens new tab beat Wall Street sales and profit expectations on Thursday for its fiscal fourth quarter, bolstered by strong early sales of iPhone 16, a set of phones designed for new AI features that was released near the end of the quarter. Apple said sales were $94.93 billion, ahead of Wall Street targets of $94.58 billion, according to LSEG. Earnings of $1.64 per share, excluding a massive one-time tax charge in the European Union, topped analyst expectations of $1.60 per share. Sales of its iPhone, the company's main product, were up 5.5% to $46.22 billion, compared with analyst estimates of $45.47 billion. Other product lines missed expectations and the China sales total was less than Wall Street expected, all of which helped send shares down 1.2% in extended trading. Apple's fourth quarter ended Sept. 28, meaning it reflects only a few days of sales of its iPhone 16 series that went on sale Sept. 20. Apple Chief Executive Tim Cook told Reuters that iPhone 16 sales grew faster than iPhone 15 sales did a year earlier, with both phones on sale for the same number of days in the fourth quarter. He also said Apple customers are downloading a new version of its iPhone operating system with what it calls Apple Intelligence features at twice the rate they had the year before. "We've had great feedback from customers and developers already," Cook said. "We're off to a good start." Investors will be listening closely to a 5 p.m. ET (2100 GMT) conference call where Apple executives will outline expectations for the fiscal first quarter, which encompasses holiday sales in the U.S., Europe and several other markets. The rollout of Apple's artificial-intelligence strategy, which it revealed this year, hinges on how well its new phones sell. Rather than introduce AI in a standalone app or service, Apple has sprinkled Apple Intelligence throughout its most recent operating systems as new features, such as the ability to help re-write an email in a more professional tone. Those features will mostly be available on iPhone 16 models, which feature more powerful computing chips, although the pro versions of the iPhone 15 both work with Apple Intelligence. While some of those Apple Intelligence features arrived this week, others have been delayed, which has led some Wall Street analysts to wonder whether consumers will be slower to upgrade their devices this year while flagship software features trickle out. The early iPhone 16 results on Thursday could allay some of those concerns. IPhone sales helped steady Apple's fourth-quarter sales in China, which were down less than 1% to $15.03 billion overall. Analysts were expecting China sales of $15.78 billion on average, according to data from Visible Alpha. SPENDING RISES Apple's rivals Microsoft (MSFT.O), opens new tab and Meta (META.O), opens new tab both said this week they expect continued increases in spending to support their AI strategies. Apple said payments for property and equipment - a measure of its capital expenditures - were up $2.91 billion from the previous quarter to $9.45 billion. Apple's lower spending comes in part because it uses third-party data centers for some AI work. Some aspects of Apple Intelligence do rely on Apple's own data centers, but the company is using its own in-house chips to power those features. "There would be some (financial) benefit to us by using our own silicon, obviously, but that's not the reason we're doing it. We're doing it because we can provide the same standard of privacy and security that we can provide on device," Cook said. Sales in Apple's services business, which includes iCloud storage and Apple Music, were $24.97 billion, compared with analyst expectations of $25.28 billion, according to LSEG. Mac and iPad sales were $7.74 billion and $6.95 billion, respectively, compared to estimates of $7.82 billion and $7.09 billion, according to LSEG data. Sales in Apple's home and wearables business, which includes its Apple Watch and AirPods devices, fell to $9.04 billion, compared with estimates of $9.2 billion, according to LSEG. Earnings per share were 97 cents including the charge related to a one-time multi-billion-euro European tax payment. Reporting by Stephen Nellis and Akash Sriram; Editing by Rod Nickel and Peter Henderson Our Standards: The Thomson Reuters Trust Principles., opens new tab

Apple Announces $46 Billion in Global iPhone Sales as AI Helps End Slump

Apple snapped out of a recent iPhone sales slump during its summer quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off. Sales of the iPhone totaled $46.22 billion for the July-September period, a 6 percent increase from the same time last year, according to Apple's fiscal fourth-quarter report released Thursday. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales. The iPhone boost helped Apple deliver total quarterly revenue and profit that exceeded the analyst projections that sway investors, excluding a one-time charge of $10.2 billion to account for a recent European Union court decision that lumped the Cupertino, California, company with a huge bill for back taxes. Apple earned $14.74 billion, or 97 cents per share, a 36 percent decrease from the same time last year. If not for the one-time tax hit, Apple said it would have earned $1.64 per share -- topping the $1.60 per share predicted by analysts, according to FactSet Research. Revenue rose 6 percent from last year to $94.93 billion, about $400 million more than analysts forecast.

Apple Beats Wall Street Estimates, Supported by IPhone Sales

(Reuters) - Apple beat Wall Street sales and profit expectations on Thursday for its fiscal fourth quarter, bolstered by strong early sales of iPhone 16, a set of phones designed for new AI features that was released near the end of the quarter. Apple said sales were $94.93 billion, ahead of Wall Street targets of $94.58 billion, according to LSEG. Earnings of $1.64 per share, excluding a massive one-time tax charge in the European Union, topped analyst expectations of $1.60 per share. Sales of its iPhone, the company's main product, were up 5.5% to $46.22 billion, compared with analyst estimates of $45.47 billion. Other product lines missed expectations. Apple's fourth quarter ended Sept. 28, meaning it reflects only a few days of sales of its iPhone 16 series that went on sale Sept. 20. Apple Chief Executive Tim Cook told Reuters that iPhone 16 sales grew faster than iPhone 15 sales did a year earlier, with both phones on sale for the same number of days in the fourth quarter. He also said Apple customers are downloading a new version of its iPhone operating system with what it calls Apple Intelligence features at twice the rate they had the year before. "We've had great feedback from customers and developers already," Cook said. "We're off to a good start." Investors will be listening closely to a 5 p.m. ET (2100 GMT) conference call where Apple executives will outline expectations for the fiscal first quarter, which encompasses holiday sales in the U.S., Europe and several other markets. The rollout of Apple's artificial-intelligence strategy, which it revealed this year, hinges on how well its new phones sell. Rather than introduce AI in a standalone app or service, Apple has sprinkled Apple Intelligence throughout its most recent operating systems as new features, such as the ability to help re-write an email in a more professional tone. Those features will mostly be available on iPhone 16 models, which feature more powerful computing chips, although the pro versions of the iPhone 15 both work with Apple Intelligence. While some of those Apple Intelligence features arrived this week, others have been delayed, which has led some Wall Street analysts to wonder whether consumers will be slower to upgrade their devices this year while flagship software features trickle out. The early iPhone 16 results on Thursday could allay some of those concerns. IPhone sales helped steady Apple's fourth-quarter sales in China, which were down less than 1% to $15.03 billion overall. Analysts were expecting China sales of $15.78 billion on average, according to data from Visible Alpha. SPENDING RISES Apple's rivals Microsoft and Meta both said this week they expect continued increases in spending to support their AI strategies. Apple said payments for property and equipment - a measure of its capital expenditures - were up $2.91 billion from the previous quarter to $9.45 billion. Apple's lower spending comes in part because it uses third-party data centers for some AI work. Some aspects of Apple Intelligence do rely on Apple's own data centers, but the company is using its own in-house chips to power those features. "There would be some (financial) benefit to us by using our own silicon, obviously, but that's not the reason we're doing it. We're doing it because we can provide the same standard of privacy and security that we can provide on device," Cook said. Sales in Apple's services business, which includes iCloud storage and Apple Music, were $24.97 billion, compared with analyst expectations of $25.28 billion, according to LSEG. Mac and iPad sales were $7.74 billion and $6.95 billion, respectively, compared to estimates of $7.82 billion and $7.09 billion, according to LSEG data. Sales in Apple's home and wearables business, which includes its Apple Watch and AirPods devices, fell to $9.04 billion, compared with estimates of $9.2 billion, according to LSEG. Earnings per share were 97 cents including the charge related to a one-time multi-billion-euro European tax payment. (Reporting by Stephen Nellis and Akash Sriram; Editing by Rod Nickel and Peter Henderson)

Apple narrowly beats estimates with boost from iPhone sales

San Francisco (AFP) - Apple reported revenues Thursday that narrowly surpassed analyst expectations, sending shares lower in after-hours trading even as the company enjoyed a boost from iPhone sales. The tech giant saw quarterly revenue of $94.9 billion in the three months ending September 28, up from the same period last year, in a closely watched report as investors seek to gauge demand for its latest iPhones. Revenue in greater China, however, showed weakness -- falling slightly from the same period a year earlier to $15 billion. The Americas remained Apple's largest market with $41.7 billion in revenue, while Europe showed strong growth at $24.9 billion. Overall, Apple barely exceeded analysts' projections, while the four other technology giants that published this week easily passed the bar set by the market. This sent shares of Apple, the world's most valuable traded company, down two percent in extended trading after the results were posted. The quarter's results were significantly affected by the EU Court of Justice's ruling over the company's tax affairs in Europe. That resulted in a back-tax charge of $10.2 billion, representing $15.8 billion payable to Ireland, partially offset by a US tax credit. Apple's iPhone sales came in at $46.2 billion, compared with expectations of $45.2 billion for the company's key product. "Today Apple is reporting a new September quarter revenue record," said CEO Tim Cook in a statement, adding that the quarter included the company's launch of a new iPhone 16 lineup. Investors are eyeing demand for new iPhones with artificial intelligence features, especially as the holiday season approaches. AI 'over time' Apple executives said that early sales of iPhone 16 trended higher than its predecessor since it hit the market, though without offering detailed figures. The company has since rolled out its first set of AI features dubbed "Apple Intelligence," across its premium iPhone, iPad and Mac devices, a major push into generative AI. Along with Apple, other tech giants like Google, Microsoft and Amazon are convinced that generative AI's powers are the next chapter of computing and are boosting spending so as not to be left behind. But Apple indicated that it would privilege quality and safety over speed as it rolls out the new AI features. "We're very early in the cycle, with a lot of new products and features that we are launching," said Apple CFO Luca Maestri. "The Apple Intelligence rollout is going to happen over time (and) not across the world as normally we do with software releases," he added. In the quarter, Apple's services segment -- which includes Apple Music, iCloud, the App Store, and Apple TV+ -- achieved a new all-time high with revenue of $25 billion, representing a 12 percent increase from the previous year. The company's shares were up more than 20 percent year-to-date, largely on confidence that AI capabilities will attract consumers to the iPhone 16.

Apple narrowly beats estimates with boost from iPhone sales

Apple reported revenues Thursday that narrowly surpassed analyst expectations, sending shares lower in after-hours trading even as the company enjoyed a boost from iPhone sales. This sent shares of Apple, the world's most valuable traded company, down two percent in extended trading after the results were posted.Apple reported revenues Thursday that narrowly surpassed analyst expectations, sending shares lower in after-hours trading even as the company enjoyed a boost from iPhone sales. The tech giant saw quarterly revenue of $94.9 billion in the three months ending September 28, up from the same period last year, in a closely watched report as investors seek to gauge demand for its latest iPhones. Revenue in greater China, however, showed weakness falling slightly from the same period a year earlier to $15 billion. The Americas remained Apple's largest market with $41.7 billion in revenue, while Europe showed strong growth at $24.9 billion. Overall, Apple barely exceeded analysts' projections, while the four other technology giants that published this week easily passed the bar set by the market. This sent shares of Apple, the world's most valuable traded company, down two percent in extended trading after the results were posted. The quarter's results were significantly affected by the EU Court of Justice's ruling over the company's tax affairs in Europe. That resulted in a back-tax charge of $10.2 billion, representing $15.8 billion payable to Ireland, partially offset by a US tax credit. Apple's iPhone sales came in at $46.2 billion, compared with expectations of $45.2 billion for the company's key product. "Today Apple is reporting a new September quarter revenue record," said CEO Tim Cook in a statement, adding that the quarter included the company's launch of a new iPhone 16 lineup. Investors are eyeing demand for new iPhones with artificial intelligence features, especially as the holiday season approaches. AI 'over time' Apple executives said that early sales of iPhone 16 trended higher than its predecessor since it hit the market, though without offering detailed figures. The company has since rolled out its first set of AI features dubbed "Apple Intelligence," across its premium iPhone, iPad and Mac devices, a major push into generative AI. Along with Apple, other tech giants like Google, Microsoft and Amazon are convinced that generative AI's powers are the next chapter of computing and are boosting spending so as not to be left behind. But Apple indicated that it would privilege quality and safety over speed as it rolls out the new AI features. "We're very early in the cycle, with a lot of new products and features that we are launching," said Apple CFO Luca Maestri. "The Apple Intelligence rollout is going to happen over time (and) not across the world as normally we do with software releases," he added. In the quarter, Apple's services segment which includes Apple Music, iCloud, the App Store, and Apple TV+ achieved a new all-time high with revenue of $25 billion, representing a 12 percent increase from the previous year. The company's shares were up more than 20 percent year-to-date, largely on confidence that AI capabilities will attract consumers to the iPhone 16.

Apple sees record revenues, but profit slumps

The Cupertino, California-based tech giant saw $94.9 billion in revenue for the fourth quarter, up 6% from $89.5 billion in the same quarter a year ago, the company reported Thursday. That surpassed Wall Street's projected $94.46 billion in revenue, according to estimates compiled by FactSet (FDS). Net income for the quarter came in at $14.74 billion, or $0.97 per share, down from from $22.96 billion last year. That fell far short of analysts' expected $24.24 billion in net income, or earnings per share of $1.60. "AI could not be a more relevant topic for Apple this quarter as they just publicly released Apple Intelligence to the world on Monday," said Christophe Ponsart, partner in the applied AI practice at consulting firm Qvest.US. "Timing is everything and a release prior to quarter end helps to gain investor confidence on Apple's ability to deliver with AI." Apple officially rolled out its new artificial intelligence features, known as Apple Intelligence, for users with the iPhone 15 Pro or iPhone 16 early this week. The company first unveiled its latest slate of iPhones and Apple Intelligence at its annual event in early September. Since then, however, analysts have been split on whether the new features will help drive upgrades and growth at the tech giant. While some are expecting the new AI tools to help boost iPhone sales and entice users to upgrade, analysts at Jefferies (JEF) said in a note this week that the features -- which will include limited hardware capabilities and a still relatively small AI model -- "are not significant enough" to power sales. Some users have also complained about long waits to download the new iOS that supports Apple Intelligence, and found the early features buggy. Read more: Apple Intelligence is here. Early users are underwhelmed But Bank of America (BAC) researchers said in an Oct. 25 note that this cycle is "more dynamic with more material software updates that increases the value to the user." "As visual intelligence, ChatGPT integration and broader Apple Intelligence features become more mainstream and improved over time, the value of personalization will likely become increasingly relevant," they wrote.